Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

Which tax form should be used to summarize payments made to an independent contractor for services rendered?

Form 1099-NEC

Form 941

Form 1040

Form W-2

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Verified step by step guidance

Understand the purpose of each tax form mentioned in the problem: Form 1099-NEC is used to report payments made to independent contractors, Form 941 is for reporting payroll taxes, Form 1040 is for individual income tax filing, and Form W-2 is for reporting wages paid to employees.

Identify the relationship between the independent contractor and the payer. Independent contractors are not employees, so forms related to employee wages (e.g., Form W-2) are not applicable.

Recognize that payments to independent contractors for services rendered are considered non-employee compensation, which is specifically reported on Form 1099-NEC.

Eliminate the other forms based on their specific purposes: Form 941 is for payroll taxes, Form 1040 is for individual income tax, and Form W-2 is for employee wages.

Conclude that the correct form to summarize payments made to an independent contractor for services rendered is Form 1099-NEC.